The accumulation of cadmium (Cd) in grains and edible parts of crops poses a risk to human health. Because rice is the staple food of more than half of the world population, reducing Cd uptake by rice is critical for food safety. HydroPotash (HYP), an innovative potassium fertilizer produced with a hydrothermal process, has the characteristics of immobilizing heavy metals and potential use for remediating Cd-contaminated soils. The objective of this study was to evaluate the HYP as a soil amendment to immobilize Cd in acidic soils and to reduce the accumulation of Cd in rice tissues. The experiment was performed in a greenhouse with a Cecil sandy loam soil (pH 5.3 and spiked with 3 mg Cd kg−1) under either flooding conditions (water level at 4 cm above the soil surface) or at field capacity. Two hydrothermal materials (HYP-1 and HYP-2) were compared with K-feldspar + Ca(OH)2 (the raw material used for producing HYP), Ca(OH)2, zeolite, and a control (without amendment). After 30 days of soil incubation, HydroPotashs, the raw material, and Ca(OH)2 increased both soil solution pH and electrical conductivity. These materials also decreased soluble Cd concentration (up to 99.7%) compared with the control (p < 0.05). After 145 days, regardless of the materials applied, plant growth was favored (up to 35.8%) under the flooded regime. HydroPotash-1 was more effective for increasing dry biomass compared with other amendments under both water regimes. HydroPotashs reduced extractable Cd in soil, Cd content in plant biomass at tillering and maturing stage, and were efficient in minimizing Cd accumulation in rice grains.